We enjoyed a decent start to our new play in this major warehouse
retailer. Although the advance was only modest, BJ was able to
establish another new high today. In addition, the stock only
closed $0.11 below the new high. Therefore, there is very little
overhead resistance. A better day tomorrow for the overall
market could encourage momentum traders to drive the shares of BJ
into uncharted territory. A new high, accompanied by midday
volume exceeding 375,000 shares, might prove to be a good
opportunity to go long. One should probably be cautious about
entering a new position if BJ gaps up $1.50 or more on the
opening because a gap up might result in a pullback in the early
going. Several of BJ's technical indicators are quite strong and
point towards continued gains for the stock. The MACD is
breaking out and the Money Flow is outstanding. OBV is also
getting stronger and the only real concern is the fact that is
approaching a level that would suggest an overbought condition.